VRS Defined Contribution Plans INVESTMENT OPTION …

Virginia Retirement VRS Defined Contribution Plans

System INVESTMENT OPTION PERFORMANCE

Below are the totals for the period ending September 30, 2006.* Returns greater than one year are annualized.

Performance comparisons are outlined below. Current performance may be lower or higher than performance data shown. Performance

data quoted represents past performance and is not a guarantee or prediction of future results. For performance current to the most recent

month-end, please visit the Web site at , click "Investments" and then "Monthly Fund Performance History." The

investment return and principal value of an investment will fluctuate so that, when redeemed, shares/units may be worth more or less

than their original cost.

Please consider the investment objectives, risk, fees and expenses carefully before investing. For this and other important information

please obtain the mutual fund prospectus (for the Active Inflation-Protected Bond Fund, Active Bond Fund, Active High-Yield Bond

Fund and Active Global Equity Fund) and fund profile sheets for the remaining investment options online at or from

the Local Service Center at 1-866-226-6682, option 2. Read them carefully before investing.

10 Years

1

3

Year-

1

3

5 or Since Inception Expense

Investment Options

Month Months to-Date Year Years Years Inception Date Ratio

Tier I: Asset Allocation Funds1

Income & Growth Fund

1.16%

Benchmark (75% Lehman Bros. Aggregate

1.16

Bond Index, 22% Russell 3000, 3% MSCI EAFE)

Balanced Growth Fund

1.42

Benchmark (50% Lehman Bros. Aggregate

1.41

Bond Index, 43% Russell 3000, 7% MSCI EAFE)

Long-Term Growth Fund

1.69

Benchmark (25% Lehman Bros. Aggregate

1.67

Bond Index, 64% Russell 3000, 11% MSCI EAFE)

4.00% 4.00

4.18 4.18

4.36 4.36

4.50% 4.51

6.01 6.01

7.52 7.51

5.57% 6.01% 5.98%

5.59

6.05

6.01

7.56 7.58

8.76 8.81

7.05 7.14

9.58 9.59

11.55 11.60

8.01 8.15

5.62% 11/99 0.07% 5.64

4.84 11/99 0.07 4.87

3.87 11/99 0.08 3.93

Tier II: Passively Managed Funds1,2

Bond Index Fund

0.88%

Lehman Bros. Aggregate Bond Index

0.88

S&P 500 Index Fund

2.58

S&P 500 Index

2.58

Russell 1000 Value Index Fund

1.99

Russell 1000 Value Index

1.99

Russell 1000 Growth Index Fund Russell 1000 Growth Index

2.75 2.75

Russell 3000 Index Fund

2.26

Russell 3000 Index

2.24

Real Estate Investment Tr Index Fund 1.92

Dow Jones Wilshire REIT Index

1.95

Small/Mid Cap Equity Index Fund3 1.03

Russell Small Cap Completeness Index

1.02

International Equity Index Fund4

0.16

MSCI EAFE Index

0.15

3.81% 3.81 5.67 5.67 6.20 6.22 3.91 3.94 4.63 4.64 9.03 9.12 0.03 0.01 3.93 3.93

3.06% 3.06 8.54 8.53 13.11 13.19 3.02 2.97 8.03 8.02 24.66 24.92 5.81 5.70 14.51 14.49

3.67% 3.67 10.79 10.79 14.52 14.62 6.03 6.04 10.24 10.22 27.78 28.07 8.39 8.28 19.11 19.16

3.36% 3.38 12.31 12.30 17.18 17.25 8.30 8.36 12.93 13.00 26.97 27.37 15.81 15.81 22.27 22.32

4.84% 4.81 6.98 6.97 10.67 10.73 4.34 4.42 7.98 8.08 22.32 22.87 13.19 13.26 13.34 14.26

6.30% 1/97

6.27

8.61 1/78

8.59

11.11 5/94

11.20

5.44 5.45

5/94

8.67 9/96

8.70

21.74 4/01

22.35

9.19 2/96

8.99

6.25 11/935

6.82

0.05% 0.02 0.09 0.09 0.09 0.21 0.10 0.14

Tier III: Actively Managed Funds

Money Market Fund6 91-Day Treasury Bill Average Active Inflation-Protected Bond Fund7,19

0.43% 0.42 0.21

1.32% 1.30 3.53

3.68% 3.74 1.85

4.71% 4.78 1.91

2.81% 2.92 4.698

2.38% 2.35 7.088

3.98% 3.79 8.078

4/78 6/009

0.12% 0.08

Lehman Bros. US Treas. Inflation Notes Index* 0.16

3.56

Active Bond Fund19

0.80 3.88

Lehman Bros. Aggregate Bond Index Active High-Yield Bond Fund10, 19

0.88 1.26

3.81 3.54

Benchmark: Custom Composite Index11

1.37

4.03

Active Small/Mid Cap Equity Fund1,2,3 1.26 -0.13

Russell Small Cap Completeness Index

1.02

0.01

Active Global Equity Fund4, 19

1.13 5.23

MSCI World Index

1.19

4.47

Stable Value Fund17

0.45 1.34

The Stable Value Fund current yield as of 09/30/06 was 5.49%.18

1.73

3.04 3.06 4.71

6.53 5.28 5.70 12.27 10.79 4.00

1.84

3.54 3.67 6.12

7.38 7.54 8.28 17.57 14.18 5.42

4.87

3.95 3.38 7.01

8.23 14.93 15.81 21.22 16.72

5.29

7.24

5.38 4.81 7.6212

9.28 13.26 13.26 16.5114 10.01 5.31

8.25

7.13 5/87 0.43

6.42

5.9812 12/7813 0.12

6.34 6.41 6.38

11/99 0.57

14.0114 03/9315 0.5016 7.24

5.92 2/95 0.18

*Updated 10/31/2006 to reflect reporting change by Lehman Brothers to the 9/30/2006 U.S. Treasury Inflation Notes Index returns.

Tier IV & Footnotes

Tier IV: Self-Directed Brokerage Option

The Self-Directed Brokerage (SDB) Option from Ameritrade allows you to select from thousands of mutual funds in addition to your Plans' core

investment options. The SDB Option is for knowledgeable investors who acknowledge and understand the risks associated with the mutual funds

available through the Option. There is an additional Plan fee of $15 per quarter, as well as transaction fees charged by Ameritrade, and investment

management fees for the mutual funds you select. These securities are not offered through GWFS Equities, Inc.

Footnotes

1 The VRS Defined Contribution Plans purchase units in various State Street Global Advisors (SSgA) Series Class A or Series Class T collective trust funds in order to provide plan participants with the ability to purchase and redeem units on a daily basis. SSgA Series Class A or Series Class T Funds invest in other SSgA

collective trust funds referred to as Base Funds.

2 Inception dates shown reflect the inception dates of the Base Funds. Performance returns for the Series Class A Funds have been linked to those Base Funds' returns. The actual performance for the Base Funds have been restated to reflect the Plans' investment management fees. Inception dates for the Series Class A Funds commenced as follows:

SSgA Bond Index Series Class A ..........................10/97

SSgA REIT Index Series Class A.......................................................5/01

SSgA S&P 500 Index Series Class A...........................3/96

SSgA Russell Small Cap Completeness Index Series Class A .......9/97

SSgA Russell 1000 Value Index Series Class A...........3/99

SSgA EAFE Index Series Class A...................................... ..............1/97

SSgA Russell 1000 Growth Index Series Class A ......8/99

SSgA Russell 3000 Index Series Class A .....................................6/97

3 Equity securities of companies with relatively small market capitalization may be more volatile than securities of larger, more established companies.

4 Foreign investments involve special risks, including currency fluctuations and political developments.

5 The inception date shown reflects the inception date of the Base Fund. Performance returns for the Series Class T Fund have been linked to the returns of the Series Class A and Base Funds. The actual performance for the Base Fund has been restated to reflect the Plans' investment management fees. The inception date of VRS' participation in the Series Class T Fund was April 21, 2003.

6 An investment in a Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although

the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

7 Effective August 2, 2005 the VRS Defined Contribution Plans began participating in Vanguard's Inflation Protected Bond Fund - Institutional share class. Previously, the Plans participated in Vanguard's Inflation Protected Bond Fund - Investor share class.

8 Performance reflects returns for the Investor share class to provide participants with the Fund's longer performance history that currently is not available with the

Insitutional share class. The Institutional share class and the Investor share class invest in the same base fund, the only difference between the two share classes is the expense ratios. The currently reported expense ratio for the Institutional share class is 0.08% and 0.20% for the Investor share class.

9 The inception date shown reflects the inception date of the Fund. The inception date for the Institutional share class was 12/12/03.

10 Effective August 2, 2004 the VRS Defined Contribution Plans began participating in Vanguard's High-Yield Corporate Fund - Admiral share class. Previously, the

Plans participated in Vanguard's High-Yield Corporate Fund - Investor share class.

11 Custom Composite Index: 95% Lehman Brothers High-Yield ex-CCC and 5% Lehman Brothers 1-3 Year Treasury Index. The Custom Composite Index approximates the credit quality of the underlying portfolio managed by Vanguard's investment advisor Wellington Management Company.

12 Performance reflects returns for the Investor share class to provide participants with the Fund's longer performance history that currently is not available with the

Admiral share class. The Admiral share class and the Investor share class invest in the same base fund, the only difference between the two share classes is the

expense ratios. The currently reported expense ratio for the Admiral share class is 0.12% and 0.25% for the Investor share class.

13 The inception date shown reflects the inception date of the Fund. The inception date for the Admiral share class was 11/12/01.

14 Performance reflects hypothetical returns based on Class A share results calculated without a sales charge to provide participants with an indication on how

the Fund may have performed over longer periods that currently is not available with the R-5 share class. The R-5 share class and the Class A share class invest in the same base fund, the only difference between the two share classes is the expenses associated with each share class.

15 The inception date shown reflects the inception date of the Fund. The inception date of the class R-5 shares was 5/15/2002.

16 The expense ratio of this Active Global Equity Fund is 0.50%, however, for those participants who invest in this Fund, .05% (the annual shareholder service fee paid to Great-West Retirement Services by American Funds) will be prorated back to their accounts quarterly (.0125%) based on their balance in the Active Global Equity Fund as of the date plan expenses are run in the preceding quarter. Participants who have taken a full withdrawal from the Plan prior to payment of the credit will forfeit their share of the credited amount. The forfeited amount will be allocated among the remaining participants entitled to a credit.

17 Performance returns have been linked to the previous investment manager. Returns prior to May 5, 2003 represent performance by MetLife.

18 The current yield is provided to help participants make choices concerning their investment options. There is no guarantee that the Fund will earn the current yield in the future.

19 These funds may impose redemption fees, and/or transfer restrictions, on certain transfers, redemptions or exchanges if assets are held less than the period stated in the fund's prospectus or other disclosure documents. For more information, please refer to the fund's prospectus and/or disclosure documents.

Tier I Asset Allocation Funds are comprised of three underlying collective trust funds managed by State Street Global Advisors (SSgA). Tier II Passively Managed Funds invest in collective trust funds managed by SSgA. Tier III Actively Managed Funds are comprised of the following: the Money Market Fund invests in a collective trust fund managed by SSgA; the Active Inflation-Protected Bond Fund invests in units/shares of the Vanguard Inflation-Protected Securities Fund Institutional shares (mutual fund); the Active Bond Fund invests in Institutional units/shares of the PIMCO- Total Return Fund (mutual fund); the Active High-Yield Bond Fund invests in units/shares of the Vanguard High-Yield Corporate Fund- Admiral shares (mutual fund); the Active Small/Mid Cap Equity Fund invests in an underlying collective trust fund managed by SSgA and a separate account managed by Goldman Sachs Asset Management; the Active Global Equity Fund invests in the R-5 units/shares of the American Funds Capital World Growth & Income Fund (mutual fund); and the Stable Value Fund invests in a separate account managed by Galliard Capital Management.

All performance returns shown reflect all fund management fees and expenses, but do not reflect the Plan administrative fee charged by Great-West Retirement Services? which would further reduce the returns shown. All calculations assume reinvestment of dividends and capital gains. All returns are calculated in U.S. dollars. Performance returns are provided by CitiStreet, The Vanguard Group, Galliard Capital Management, American Funds and Pacific Investment Management Company (PIMCO), not Great-West Retirement Services?. You cannot invest directly in an index. Although data is gathered from sources believed to be reliable, we cannot guarantee completeness or accuracy. Plan Administrative Fee - An annual recordkeeping and communication services fee of 28 basis points (0.28%) capped at account balances of $130,000 will be deducted from your account on a quarterly basis (0.07% per quarter). Securities (except the Self-Directed Brokerage Account option), when offered, are offered through GWFS Equities, Inc., a wholly owned subsidiary of Great-West Life & Annuity Insurance Company, 8525 E. Orchard Rd., Greenwood Village, CO 80111, 1-866-226-6682.

Great-West Retirement Services? refers to products and services provided by Great-West Life & Annuity Insurance Company and its subsidiaries and affiliates.

Have Questions? Need Information?

Visit the Web site: Call KeyTalk?: (866) 226-6682, option #1

Visit the local service center: 1108 East Main Street, Suite 1102

Richmond, Virginia 23219 Hours: 8am to 5pm

For more detailed fund information, visit the Web site at and click on "Fund Profile Sheets."

Form #CB1007IOAG (10/31/2006)

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